Boeing Co., Chicago, dropped a proposal to replace its defined benefit plan with a defined contribution plan for employees represented by the International Association of Machinists hired after Jan. 1, said Boeing spokesman Tim Healy.
The proposal had been included as part of contract talks with the IAM.
“This proposal reflects our effort to listen to employees and (develop) an agreement they’ll be happy with,” Mr. Healy said.
The underlying cost concerns behind the proposal to close the DB plan to new employees haven’t changed, Mr. Healy said. “A (DC plan) for employees will continue to be something that we’ll talk about, but for this contract, it’s out,” he said.
Also, the company has upped its multiplier for retiree benefits by 11% in its latest contract offer. It has committed to making a final offer before Labor Day; the machinists’ contract expires Sept. 3.
In its latest offer, Boeing kept a proposal to end its retiree medical plan for new IAM-represented employees and place them into a new medical expense savings plan.
